THE PARTICULAR CHARACTERISTICS OF EDUCATION AS AN ECONOMIC GOOD ARE EXAMINED. THE LITERATURE ON THE ECONOMIC VALUE OF EDUCATION, THE DIFFERENT APPROACHES TO EDUCATIONAL PLANNING, AND THE MATHEMATICAL MODELS PROPOSED FOR THIS PURPOSE ARE ANALYZED. THESE APPROACHES ARE SYNTHESIZED TO OBTAIN A COMPREHENSIVE ESTIMATE OF THE DEMAND FOR EDUCATION. THE PRODUCTION AND SUPPLY SIDES OF EDUCATION ARE DISCUSSED, AND INPUT-OUTPUT SCHEME AND ACTIVITY ANALYSIS MODELS ARE PROPOSED AS ANALYTICAL TOOLS IN DRAFTING MEANINGFUL EDUCATIONAL PLANS. DATA FROM THE BERKELEY CAMPUS OF THE UNIVERSITY OF CALIFORNIA ARE USED TO ESTIMATE COEFFICIENTS FOR THE NONINSTRUCTIONAL HUMAN INPUTS IN HIGHER EDUCATION. THIS DOCUMENT IS AVAILABLE AS AD 647 988 FROM CLEARINGHOUSE FOR FEDERAL SCIENTIFIC AND TECHNICAL INFORMATION, CAMERON STATION, SPRINGFIELD, VIRGINIA 22314, FOR $3.00 HC, $0.65 MF. (HW)